HC Deb 25 March 1982 vol 20 cc395-7W
Mr. Myles

asked the Chancellor of the Exchequer what further progress has been made in securing United Kingdom budget refunds from the European Community.

Mr. Ridley

The Commission has today announced further decisions on payment of the United Kingdom's Community budget refunds. As a result the United Kingdom is to receive in the next few days payments totalling some £813.2 million under the "supplementary measures" scheme as a first instalment of our entitlement to 1981 budget refunds under the agreement of 30 May 1980. These refunds represent 80.7 per cent. of our

Community contributions in respect of United Kingdom public sector investment programmes 1981–82

£ million

Sub-programmes Northern Ireland Scotland Wales Northern England North-West England South-West England Yorkshire and Humberside General Roads Northern Ireland per cent. General per cent. Total
Roads 17.5 37.7 37.7 8.8 24.5 0.3 7.7 108.6 50 *40 242.8
Electricity 55.8 13.0 19.6 61.8 2.0 44.6 1 20 196.8
Water and Sewerage 13.1 13.6 23.0 36.2 7.6 30.4 50 40 123.9
Land reclamation 0.2 2.8 20 20 3.0
Telecommunications 34.7 58.9 37.9 27.1 64.0 12.8 55.2 50 40 290.6
Housing 46.5 50 46.5
Total 112.0 155.2 102.2 78.5 186.5 22.7 137.9 108.6 903.6
* 45 per cent. for the General Roads Programme outside the assisted areas.

The supplementary measures regulation provides that a down-payment of 90 per cent. of agreed contributions may be made before certification that the expenditure in question has been carried out. Pending certification, the total amount now payable in respect of the eight programmes is therefore 90 per cent. of £903.6 million, ie £813.2 million.

The Community budget refunds are enabling public expenditure programmes generally in the United Kingdom to be sustained at levels higher than the country could otherwise have afforded. Expenditure programmes throughout the country are benefiting accordingly. The refunds do not, however, open the way to increases in domestic expenditure programmes beyond the levels already planned. These planned levels were set on the assumption that substantial refunds would be received from the Community budget.

Projects which form part of the programmes in Northern Ireland now attracting support under the supplementary measures scheme include the construction of a new road linking the M1 and M2 in Belfast, the provision of a new bridge across the River Foyle at Londonderry.and improvement of the Lagan Valley sewer. Also attracting Community support are programmes to provide new and improved housing, particularly in Belfast, Londonderry and Lisburn, land reclamation and a wide-ranging telecommunications investment programme.

Projects which form part of the programme in Scotland now attracting support under the supplementary measures scheme include several improvements to the A9, in particular the construction of a bypass at Pitlochry and bridge at Kessock, and estimated gross entitlement for 1981 and are additional to the £799 million granted for 1980, details of which were contained in my reply to my hon. Friend the Member for Plymouth, Drake (Miss Fookes) on 22 December.—[Vol. 15, c. 390–394.]

The supplementary measures scheme provides for contributions by the Community in respect of public sector investment programmes in the United Kingdom, principally in the regions. The decisions announced today provide for the Community to contribute a total of £903.6 million in respect of the current year's investment programmes by central Government and public corporation spending authorities in Northern Ireland, Scotland, Wales and the English assisted areas of the North, North-West, South-West and Yorkshire and Humberside. A programme of trunk roads investment outside the assisted areas has also been granted support. The following table shows the breakdown between these programmes. The percentage figures show the Community contribution as a proportion of total estimated expenditure in 1981–82 on the programmes concerned.

the construction of the advanced gas-cooled nuclear power station at Torness. Also attracting Community support are the Scottish Development Agency's land reclamation programme and the programme of telecommunications investment under-taken by British Telecom. The latter programme is designed to strengthen the links with the more remote areas of Scotland, especially those facing new developments as a result of North Sea oil, as well as improving facilities in the central belt and links between Scotland and the national and international networks.

Projects which form part of the programmes in Wales now attracting support under the supplementary measures scheme include construction of the M4—Bridgend northern bypass—the A40—Raglan to Abergavenny—the A55—diversion east of Abergele—the pumped storage power station at Dinorwic, and the Queensferry sewerage works extension and Wye abstraction schemes. Also attracting Community support is British Telecom's programme for modernising and extending the telecommunications service in Wales.

Projects which form part of the programmes in the Northern region now attracting support under the supplementary measures scheme include improvements in the A66 east-west link road and the A1 north of Newcastle, and the construction of a nuclear power station at Hartlepool. Also attracting Community support is a programme of improvements to the region's telecommunications network and water and sewerage facilities, including the Kielder reservoir and the Tees augmentation scheme.

Projects which form part of the programmes in the North-West region now attracting support under the supplementary measures scheme include several motorway schemes which form part of the Manchester outer ring road, the top priority road in the region; construction of the Ince B oil-fired power station and the Heysham I and II nuclear power stations; the covering of reservoirs and provision of new treatment facilities at Prescott, Liverpool and the Manchester/Davyhulme sludge digestion scheme. The Community is also supporting an extensive programme of telecommunications investment in the region, including the provision of a number of new telephone exchanges.

Projects which form part of the programmes in the South-West region now attracting support under the supplementary measures scheme include the St. Neots, Colliford impounding reservoir and the Cambourne-Redruth main drainage scheme. Also attracting Community support are investment programmes to improve the region's power distribution system and telecommunications facilities.

Projects which form part of the programmes in Yorkshire and Humberside now attracting support under the supplementary measures scheme include the completion of the routes through Hull, improvements to the A180 route to Immingham and Grimsby and the construction of the Drax coal-fired power station. Also attracting Community support are investment programmes in telecommunications and water and sewerage, including improvements in the Yorkshire grid supply network and construction of the Don Valley intercepter sewer to improve facilities for industry in Sheffield.

The Department of Transport's programme of trunk roads investment outside the assisted areas attracting Community support under the supplementary measures scheme includes sections of the M25 orbital motorway around London, the A45 Ipswich bypass, the M54 from Telford to the M6 and the A40 Gloucester northern bypass.

Summaries of the eight programmes put forward by the United Kingdom for Community support under the supplementary measures scheme were placed in the Library in December 1980.